It is a common law rule in Ontario that an estate executor (formally known as the “estate trustee”) has a year following the date of death to wind up an estate. This first year prior to estate settlement is generally accepted as the “Executor’s Year” and there may be special circumstances that indicate an extension of time, if needed. During the first twelve months, the executor must conduct many important tasks under a high standard of care for the benefit of the beneficiaries. These tasks are outlined here below.
Locate and Preserve Important Documents and All Assets
One of the first tasks to be completed by the executor, besides funeral arrangements, is to locate, preserve and inventory all important documents, including the Will and any codicils, all valuables and the estate assets in totality. The executor must ensure that any real estate, vehicles and other pertinent assets continue to be insured and that all estate debts and liabilities are paid. A title search should be obtained if the estate contains real property. All estate assets should be realized and invested prudently to preserve their value for distribution to the beneficiaries.
Provide Notifications
Several notifications are necessary, including to the beneficiaries about their entitlement and financial institutions which the deceased dealt with about the death. All creditors must be notified about the death (often through advertising for creditors locally) as well as the Ministry of Transportation, the Ontario Health Insurance Plan, etc.. The executor can also contact CPP and apply for the death benefit (maximum $2500) and survivor’s pension if applicable.
Obtain Legal Advice
Legal advice is recommended to protect the executor. It may be critical in certain situations, such as if a beneficiary is a minor, mentally incompetent, an undischarged bankrupt, deceased or cannot be located. An estate lawyer in Richmond Hill, Newmarket, Barrie, or Aurora can help you to determine whether you need to make a payment and who to or if the funds need to be held in trust.
Make Arrangements for Any Minor Children
If the deceased had minor children, the individuals named in the Will as guardians must be notified and willing to care for the children temporarily (for 90 days) until formal responsibility for the role of guardian is obtained through the court.
Set Up Testamentary Trusts
If the Will established trusts, they need to be put in place and managed according to the Will (e.g., a spousal trust, a trust for children or grandchildren that runs to an age later than 18).
Apply for Probate
With help of an estates lawyer, the executor will usually apply for a Certificate of Appointment (commonly known as “probate”) from the court to confirm his or her authority in the role. To prepare the court documentation and calculate the estate administration tax (i.e., “probate fees”), an estates lawyer can help to distinguish which assets form part of the estate and which assets are to be excluded.
Contact Epstein & Associates, Estate Lawyers in Newmarket & Richmond Hill
There are a great deal of responsibilities involved in the executor’s year and failure to perform any of the duties can result in personal liability to the executor for a breach of trust. At our law firm, we can help to take steps that protect you against personal liability in your role as estate executor. We can also represent your interests to the executor as beneficiary of the estate. Contact our Newmarket lawyers at 905-898-2266 or our Richmond Hill estate lawyers at 416-777-2210 for a consultation.